Retirement planning is not just about saving. It is also about investing because money sitting in a bank account for 10, 20, 30 years will serve as a waste of valuable time. That being said, there are numerous avenues where individuals can invest their retirement savings and real estate is one of the most lucrative ones.
Are you considering making a real estate investment as part of your retirement plans? If so, you should consider both the advantages and disadvantages before making the final decision. According to Bill Schantz, the property market may offer significant returns but it can have some drawbacks to it.
Bill Schantz Highlights the Benefits of Investing in Real Estate
One of the biggest advantages of real estate is that it offers high potential returns per Bill Schantz. The possibility for significant returns is one of the key reasons people invest in real estate. You can profit greatly from your investment if the market and property are favorable.
Also, it is a physical asset unlike cryptocurrency or other digital tokens today. Real estate is tangible which means that you can view the property, as opposed to stocks and bonds, which are paper investments. It may feel safer as a result than investing in other kinds of assets.
Lastly, real estate investment is reliable. Real estate is typically a more stable investment than equities, which have a tendency to experience sharp price fluctuations. Investors that are searching for long-term growth may find comfort in this consistency.
The Drawbacks of Real Estate Investment According to Bill Schantz
Big rewards come with big risks and naturally then, real estate is a risky investment. The possibility of your property’s value declining dramatically is one of the major hazards associated with real estate investing. If you’re purchasing real estate in a region that is vulnerable to economic downturns or natural disasters, this risk is especially important to consider.
Moreover, selling a property takes time. The lengthy process of selling your house is another drawback of real estate investing. Real estate might not be your greatest option if you need to immediately withdraw your money.
This also means that it is an asset that lacks liquidity. As opposed to equities and bonds, which can be quickly traded for cash, claims Bill Schantz, real estate can’t. This indicates that it can be challenging to withdraw your money from an investment if the need arises.
The Fundamentals of Investing in Real Estate
Bill Schantz claims that one of the wisest ways to generate money is through real estate investing. You can create long-term wealth, earn rental income, and receive tax benefits by investing in real estate. Unlike stocks and bonds, real estate is a tangible asset that you can see and touch, making it simpler to comprehend and value.
There’s always more to learn about real estate investing, whether you’re a seasoned pro or a novice. The movements of the market, which areas offer sustainable return on investment, average pricing of rentals and numerous other factors play a role in making decisions when putting your hard earned money in this market.
Conclusion
It’s crucial to carefully consider the advantages and disadvantages of real estate investment before making a decision. Real estate can be a fantastic investment, but there are risks involved. Bill Schantz advises that before making any investment, you should make sure that you are aware of the risks involved.